The general manager of an engineering solutions department at Robert Bosch Engineering India, a subsidiary of a major German supplier of automotive components, must expand his department from captive to non-captive (i.e., non-Bosch) business and grow rapidly. He believes that non-linear growth is feasible if he leverages competencies and talent built over the years within his division. He faces complex strategy execution challenges, including challenges related to funding, sales and marketing and the existing captive-oriented culture, in shifting from a captive to non-captive mode of business for growth. The automotive ecosystem, within India and abroad, is rapidly changing with its focus on high technology and offers opportunities while also posing threats. At the same time, senior management’s expectations for the general manager are high. He must decide whether to focus more on the development of non-linear products/services or on captive jobs in order to meet his firm’s revenue goal. He could also adopt a hybrid approach.
The general manager of an engineering solutions department at Robert Bosch Engineering India, a subsidiary of a major German supplier of automotive components, must expand his department from captive to non-captive (i.e., non-Bosch) business and grow rapidly. He believes that non-linear growth is feasible if he leverages competencies and talent built over the years within his division. He faces complex strategy execution challenges, including challenges related to funding, sales and marketing and the existing captive-oriented culture, in shifting from a captive to non-captive mode of business for growth. The automotive ecosystem, within India and abroad, is rapidly changing with its focus on high technology and offers opportunities while also posing threats. At the same time, senior management's expectations for the general manager are high. He must decide whether to focus more on the development of non-linear products/services or on captive jobs in order to meet his firm's revenue goal. He could also adopt a hybrid approach.
Chronicles the experience of Lucchetti, a Quinenco subsidiary, as it expanded from its historically strong domestic stronghold into Peru. Lucchetti, a pasta company, had grown to the point where there was no room to expand in the Chilean market. The Peruvian market, however, looked extremely promising. Thus, in 1996, Lucchetti Peru was born. By late 2003, however, the new state-of-the-art pasta plant was being liquidated. The management of the company was considering whether Lucchetti should leave the Peruvian market altogether and absorb a $150 million write-off or, alternatively, to continue and build a new plant to take advantage of what was left of the Lucchetti market share, despite the considerable additional investment required. Had this been a case of a good strategy plagued by Murphy's Law? Was there something they should have known or some point where the team members had made the wrong decision? The lesson to be gleaned from this failed Peruvian venture remained unclear, but they wanted to apply those lessons to future domestic and international expansion ventures.
Vina San Pedro (VSP) is the third-largest vineyard in Chile and has recently expanded its capacity. The new president is considering how fast to push into both foreign and domestic markets, where efforts should be focused, and how to balance capacity within the context of uncertain, volatile markets and the vagaries of foreign exchange. Meanwhile he must position growth in the context of new return-on-capital-employed objectives.
When Allied Domecq purchased Casa Pedro Domecq, the intent was to absorb the new division into the company. But the Mexican subsidiary had different ideas: to operate as an independent unit but reap the benefits of being part of something larger. The conflict between various intentions, cultures, and management approaches helps define the nature and timing of this alliance.
Presents some of the dilemmas of gathering competitive information and the appropriate limits for competitive analysis. Raises the issues involved and provides information about actual corporate practice.
Describes the internationalization of the Kentucky Fried Chicken (KFC) fast food chain, focusing on KFC's entry into Japan. An entrepreneurial country general manager, Lou Weston, battles numerous problems to establish the business and is eventually highly successful. In doing so, Weston ignores or circumvents policies and control from KFC's headquarters and becomes very upset when more sophisticated planning, coordination, and control systems begin to constrain his freedom. The case presents both the headquarters and subsidiary perspectives and allows discussion of the conflicts between strategic planning and control and entrepreneurial independence in a multinational company.
Reviews and updates the structure and characteristics of the earth-moving equipment industry presented in the companion case, Caterpillar Tractor Co. After revealing that CAT has suffered major financial losses during the period from 1981 through 1984, the case describes how Komatsu grew from a $170 million local manufacturer in 1963 to become CAT's major challenge in the emerging global competitive battle. The case traces the strategy followed by Komatsu in developing its product technology, manufacturing capability, and marketing skills worldwide. The supplement, Caterpillar-Komatsu in 1986, provides an update to the global competitive interaction between Caterpillar and Komatsu. Caterpillar's response to Komatsu's growing market share is outlined, then the impact of rapidly changing dollar/yen exchange rates provides Caterpillar with an interesting pricing decision.
Describes the structure and evolution of the earth moving equipment industry worldwide in the post war era, particularly focusing on developments in the 1960s and 1970s. Describes Caterpillar's strategy in becoming the dominant worldwide competitor (industry market share exceeding 50%). Includes details on CAT's manufacturing, marketing research and development, and organizational policies. Concludes with a description of some environmental changes occurring in the early 1980s, and raises the question of how these might effect Caterpillar Tractor Co.'s record 1981 performance and require changes in its highly successful strategy.